MILAN – Kraft Foods Group Inc will increase the price of its premium Gevalia brand coffee by about 7%, effective July 28. The decision is due to sustained increases in the green coffee market, a spokesman informed on Tuesday.
Gevalia single-serve cups, Gevalia e-commerce SKUs and Tassimo Gevalia T Discs are not included in the price increase, the company said in an email.
Last month, the J.M. Smucker Co. increased prices by 9% on its Folgers coffee and on Dunkin’ Donuts packaged products it distributes to retailers. Kraft Foods Group followed a few days later with a 10% hike on Maxwell House and Yuban.
Starbucks Corp said it will raise prices on some drinks offered by its U.S. shops and also boost list prices on its own brand of packaged coffee sold in supermarkets and other retail outlets.
According to Technomic Inc., a restaurant industry research firm in Chicago, the price of a cup of coffee at quick-service restaurants nationwide increased by 2% to $2.29 in the first three months of the year — before the drought had any real effect on retail costs.
Following the drop in green coffee costs, Kraft Foods Group Inc. (KRFT) had previously cut Gevalia coffee prices by 6% in May 2013.